Multiple Choice
An individual pays $4,000 for a $5,000 face value, coupon-bearing bond that pays $400 per year and will be held until it matures in ten years. The current yield on this bond is
A) 10 percent.
B) 8 percent.
C) 6 percent.
D) 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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